Balanced Growth Across Automotive, Smartphones and Other Businesses and Business Portfolio Transformation

「<Medium-Term Management Plan 2027: Basic Policies> 1. Pursue high added value 2. Develop the next core business 3. Strengthen the management foundation」

「We will pursue a fundamental review of our earnings structure, including withdrawing from unprofitable products, selecting and concentrating on products within our portfolio, reorganizing production sites, and rigorously applying investment decisions based on ROIC.」

「The business segments are defined as the “Components Business,” which aims to maintain and expand the earnings base; the “Sensor and Communications Business,” positioned as a future growth area to be expanded; and the “Mobility Business,” which aims to improve earnings quality through business improvements. The company will pursue initiatives aimed at more balanced growth.」

「As part of its initiatives to enhance corporate value, the company aims to achieve a PBR of at least 1x by the fiscal year ending March 2027 under the Third Medium-Term Management Plan, which starts in the fiscal year ending March 2026. As part of its growth strategy to transform the business portfolio, the company is selecting priority and non-priority businesses and promoting more efficient management in order to concentrate the allocation of management resources.」

「There were no material changes during the cumulative third quarter to the management policies, management strategies or other matters established by the Group.」

「There were no material changes to the management policies, management strategies or other matters established by the Group during the six-month period ended September 30.」

「There were no material changes to the management policies, management strategies or other matters established by the Group during the three-month period ended June 30.」

「From April 2022, the company reorganised its business segments into the “Components Business,” which aims to maintain and expand its earnings base; the “Sensor and Communications Business,” positioned as a future growth area to be expanded; and the “Module and Systems Business,” which aims to improve earnings quality through business improvements, and is pursuing initiatives aimed at more balanced growth.」

「From April 2022, the company reorganised its business segments into the “Components Business,” which aims to maintain and expand its earnings base; the “Sensor and Communications Business,” positioned as a future growth area to be expanded; and the “Module and Systems Business,” which aims to improve earnings quality through business improvements, and is pursuing initiatives aimed at more balanced growth.」

「From April 2022, the company reorganised its business segments into the “Components Business,” which aims to maintain and expand its earnings base; the “Sensor and Communications Business,” positioned as a future growth area to be expanded; and the “Module and Systems Business,” which aims to improve earnings quality through business improvements, and is pursuing initiatives aimed at more balanced growth.」

「As part of its development activities, the company pursued specific initiatives toward commercialising the future vehicle interior space “Digital Cabin,” which integrates automotive modules, displays, infotainment, and sound, including entering into a business partnership agreement with TS TECH.」

「Development activities included obtaining certification enabling mass production of Japan's first 60 GHz-band millimetre-wave sensor product and jointly developing GNSS modules (Global Navigation Satellite System) with FURUNO ELECTRIC CO.,LTD. to contribute to the advancement of autonomous driving functions, along with other initiatives aimed at expanding future business.」

「There were no material changes to the management policies, management strategies or other matters established by the Group during the six-month period ended September 30.」

「As initiatives for the future, we accelerated proposals and product development for the Digital Cabin product lineup created through synergies with the electronic components business, and developed products using a 5G platform for autonomous driving.」

「In this area, the automotive information equipment business strengthened the MaaS (Mobility as a Service) business through proposals for the Digital Cabin product lineup created through synergies with the electronic components business, development of digital key systems for car sharing using blockchain technology, and management of vehicle information in connected cars.」

「In this context, the automotive information equipment business strengthened proposals for digital cabins that leverage synergies with the electronic components business and accelerated related product development. It also worked to develop digital keys for car sharing using blockchain technology, develop applications of 5G for autonomous driving, and strengthen the MaaS (Mobility as a Service) business for managing vehicle information in connected cars.」

「To advance Active Safety technologies supporting automated driving, development of C-V2X (Cellular based Vehicle to X), a driver-assistance technology whose adoption is leading in China, has progressed, and preparations are under way for market introduction in fiscal 2020.」

「Looking ahead to the era of autonomous driving, the Company advanced various next-generation product developments, including high-quality in-vehicle input devices (Premium-HMI), smart access using digital keys based on blockchain technology, and tire sensors developed jointly with The Yokohama Rubber Company,Limited.」

「Against this backdrop, the automotive information equipment business accelerated the early realization of synergies from the management integration by focusing on developing new products linking display products with sensors from the electronic components business and commercializing drone systems using technology that combines navigation GPS (Global Positioning System), image processing technology and sensors.」

「In this context, in the automotive information equipment business, to address CASE, a new trend in the automotive industry, the Company is combining the sensing device and communication device technologies of its electronic components business with the software technologies of its automotive information equipment business. It is strengthening the development of HMI (Human Machine Interface) systems that provide drivers and passengers with an inspiring mobility space and experience, and aims to become a total solutions company for automotive information systems.」

「In this context, in the automotive information equipment business, to address CASE, a new trend in the automotive industry, the Company is combining the sensing device and communication device technologies of its electronic components business with the software technologies of its automotive information equipment business. It is strengthening the development of HMI (Human Machine Interface) systems that provide drivers and passengers with an inspiring mobility space and experience, and aims to become a total solutions company for automotive information systems.」

「While continuing to pursue two earnings pillars in the automotive and mobile markets, the Company will place greater emphasis on developing innovative CASE products for the automotive industry and accelerate efforts to secure its next business. In the EHII market business, it will work to establish the business base at an early date by continuing group-wide proposal activities and collaborating with other companies.」

「The Company is required to achieve balanced growth in its automotive, smartphone and other businesses by maintaining growth in the smartphone business and undertaking risk management in preparation for slower growth and commoditization as the market matures, while establishing and expanding businesses to replace the smartphone business.」